Liquor all set to get cheaper in Haryana

CHANDIGARH: For keeping the prices of alcoholic drinks competitive, the Haryana cabinet on Friday approved a series of measures to ward off inflow of liquor from neighbouring states, particularly Delhi.

Approving the excise policy for 2022-23, the cabinet reduced the value added tax (VAT) for country liquor (CL), Indian made foreign liquor (IMFL), wine, beer from 13-14% to 12%. The VAT on imported foreign liquor was also slashed from 10% to 3%.

Officials said there will be no increase in the excise duty of most IMFL brands. Rather IMFL brands above ₹5,000 per case will attract slightly lesser excise duty in order to ward off the challenge coming from a neighbouring state, they said.

The excise duty on imported foreign liquor (bottled in origin), whisky and wine were also reduced from ₹225 per proof litre to ₹75 per proof litre. Similarly, the assessment fee for supplies to bars has also been reduced. Officials said bars and retail vends will now have the flexibility to operate for longer hours by paying an additional fees. An official spokesperson said the excise revenue collections in 2021-22 financial year was about ₹7,938 crore as against ₹6,791 crore in 2020-21 fiscal, which was 17% higher.

The import duty on wine has been slashed from ₹7 to ₹2 per bulk litre. The letter of intent fee for establishing wine manufactory has also been reduced from ₹15 lakh to ₹1 lakh. The spokesperson said Morni hills in Panchkula has been added in the list of places where bar licences can be granted to promote tourism and adventure sport.

The basic quota of CL and IMFL will be 1,100 lakh proof litre and 650 lakh proof litre, respectively, which is about 4% higher than last year.

Besides this, there will be no fixed quota of country liquor allotted to distilleries so the licences will have full freedom to choose brands of any distillery.

The spokesperson said there is no change in the minimum retail sale price of most brands of country liquor and IMFS except metro liquor.